GBP/USD buyers approach a test of the key near-term level

GBP/USD H1 12-05

The drop in the dollar sees cable run to a high of 1.2367 before backing off a little, as the topside move runs into resistance from the 100-hour MA (red line) @ 1.2364.

That is now the key level in focus as we look towards North American trading and the slight shift in the risk mood from earlier today.

Keep below that and the near-term bias remains more bearish. But if buyers break above that, the near-term bias will then turn to be more neutral instead.

Meanwhile, downside support can be seen closer to 1.2300 and just below that around 1.2283-95 from the lows in previous sessions. The 7 May low @ 1.2266 also adds another level for buyers to lean on in case this upside move fumbles.

Beyond the 100-hour MA, buyers also still have more work to do with the trendline resistance @ 1.2412 set to get in the way before the 200-hour MA (blue line) comes into the picture, currently @ 1.2424.